Investments in Cold Storage Warehouses On the Rise

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Researched by Industrial Info Resources (Sugar Land, Texas)--The upsurge in demand for perishable goods such as vegetables, fruits and dairy products, increasing popularity of online shopping for groceries and food articles, and a rising working population driving the skyrocketing sales volumes of ready-to-eat and frozen foods, have fueled the demand for cold storage warehouses globally.

New Cold Pty Limited (Netherlands) is inaugurating one of the world's largest cold storage facilities, in Lebanon, Indiana, to tap into this growing market. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project and Plant databases can click here for a related Phase 2 project report and here for a plant profile.

Growth in the sector can be traced back to the outbreak of COVID-19 when the world went under lockdown and the demand for last-mile distribution increased. With the shutting down of food services and restaurants and a majority of the population sitting at home, companies held more inventory than before and the need for good quality preserved food increased overnight.

As the demand for chemically stable food with a long shelf life increased, so did the construction of cold chain facilities in the U.S. According to CBRE Group Incorporated (NYSE:CBRE) (Dallas, Texas), development of cold storage shot up from 300,000 square feet in 2019 to roughly 3.3 million square feet as of second-quarter 2022.

Many companies around the world have started setting up new facilities as well as expanding existing ones to ward off future bottlenecks.

Industrial Info is tracking 775 cold storage warehouses globally, the majority of which are operating in North America and Oceania. Subscribers can click here for a full list.

Industrial Info also is tracking 365 projects globally, worth US$10.79 billion, that are dedicated toward cold storage facilities. Click here for a full list.

North America is the biggest driver of investment, owning a market share of around 88% and a sizeable investment value of US$9.5 billion across 235 projects. It is followed by Oceania, with an investment value of US$590.6 million, and Europe with $404.7 million.

Country-wise, the U.S. leads the way with a total spend pipeline of US$8.8 billion across 217 projects, followed by Canada (US$722 million) and Australia (US$574 million).

With 54% of this investment being in the initial planning stages and around 24.5% already under construction, most of these projects are expected to get completed by March 2025 while the rest are expected to reach fruition by June 2028.

NewCold Pty Ltd, Agile Cold Storage (Gainesville, Georgia) and FreezPak Logistics (Carteret, New Jersey) with a combined project spending of US$2.17 billion, are the top players in the market.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).